China Analysts Predict Economic Shrinkage

According to analysis by senior researches for the Chinese regime, China's economic growth is expected to drop to the lowest levels since 2001. As economic concerns grow, so too is social unrest. Here's the story.

The global economic recession is taking its toll on China's economy.

New research released on Thursday by senior researchers for the Chinese regime shows a slowdown in its exports, although it could still achieve seven to eight percent of economic growth in 2012.

For the first time in 28 months, foreign investment in China has dropped, according to a report by Reuters. It's bad news for China's already shrinking industrial sector. Strikes and protests have rocked the nation in recent months as factories close down.

China's rapid economic growth since 2009 led to skyrocketing inflation. But as the economic fortunes of Europe and the US have soured, it now faces the opposite problem. The market China depended on for growth has vanished. Many expect 2012 to see even more losses.

The Chinese regime has instituted several policies in recent weeks aimed at boosting growth, such as lowering bank reserve rates to free up more money and increase lending.

But the biggest question the Chinese regime faces is how the Chinese people will react, and whether strikes and protests will grow.